Earnings Outlook For O2Micro International

O2Micro International OIIM announces its next round of earnings this Friday, February 05. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect O2Micro International's EPS to be near $0.1 on sales of $23.27 million. O2Micro International reported a profit of $0.05 per share when it published results during the same quarter last year. Sales in that period totaled $17.86 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 100.0% increase in the company's earnings. Sales would be up 30.28% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of O2Micro International were trading at $9.93 as of February 03. Over the last 52-week period, shares are up 493.19%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. O2Micro International is scheduled to hold the call at 09:00:00 ET and can be accessed here.